Land lease agreements – guides, rules & templates

Building on leased land – what applies when the house stands on rented ground?

A building on leased land means that the house and the land have different owners. Read about residential land leases, changes in ownership, property tax assessment, and what the agreement should regulate.
Published Emil Sunnerberg
Building on leased land – what applies when the house stands on rented ground?

Fact-checked October 2, 2026.

A building on leased land (known in Swedish as "ofri grund") is a building owned by someone other than the person who owns the land. A common example is a summer cottage owned by the tenant while the plot is owned by the landowner.

The house and the land have different owners

The Swedish Tax Agency treats a small house on leased land and the leasehold plot as separate units when they have different owners. In this situation, the building is personal property in a civil law sense, while the land belongs to the property owner.

Which type of lease applies?

If land is leased so that the tenant can erect or maintain a residential building and the primary purpose is housing, it is normally a residential lease (bostadsarrende). This classification determines the rules regarding contract duration, termination, and security of tenure.

What happens when the house is sold or gifted?

A change of ownership for a building on leased land should be clearly documented. The Swedish Tax Agency states that the change of ownership must be reported so that the Real Property Assessment Register can be updated. The lease agreement also needs to be checked because the right to transfer the leasehold is not the same as the right to transfer the building itself.

Property fee

The owner of a small house on leased land may be liable to pay municipal property fees for the building, while the landowner is responsible for the property fee for the leasehold plot according to the Swedish Tax Agency's rules.

The agreement should specifically regulate

  • who owns existing and new buildings,
  • maintenance and insurance,
  • what happens at the end of the agreement,
  • transfer of the building and the leasehold,
  • compensation for investments,
  • fees and security of tenure.

Also read reasonable lease fees for summer cottages.

Regulate the land lease in writing

See template for residential lease – 49 SEK

Sources

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